In a landmark transaction marking Pakistan’s most significant privatization initiative in decades, a consortium headed by Arif Habib Group has successfully acquired a 75% controlling interest in Pakistan International Airlines (PIA). The winning bid of 135 billion rupees ($482 million) was announced during a nationally televised auction ceremony on Tuesday, representing a crucial milestone in the government’s protracted effort to divest the chronically unprofitable national carrier.
The acquisition fulfills a key condition set by the International Monetary Fund (IMF), which has consistently advocated for PIA’s privatization as a central component of Pakistan’s economic reform agenda connected to international bailout packages. Finance Minister Muhammad Aurangzeb characterized the bidding process as thoroughly transparent and competitive, expressing confidence that the new ownership would spearhead the airline’s operational revitalization.
This development occurs against a backdrop of tentative recovery for PIA, which recently resumed direct European flights just two months ago following the European Union Aviation Safety Agency’s decision to revoke a four-year suspension imposed over safety violations. The prohibition originated after the tragic 2020 Karachi crash that claimed 97 lives.
Once celebrated as a regional aviation leader, PIA’s operational efficiency has dramatically deteriorated through decades of political interference and severe overstaffing. The carrier currently maintains approximately 300 employees per aircraft across its 32-plane fleet—substantially exceeding the industry standard of fewer than 200 workers per aircraft—reflecting profound structural challenges that the new ownership must address.